“Investment in new WDM
gear is growing, but it isn’t growing fast enough to offset the
accelerated declines in SONET/SDH,”
notes Andrew
Schmitt, principal analyst for optical at Infonetics
Research. “SONET/SDH spending hit another all-time low in the third
quarter, as architectural shifts in wireless backhaul quicken its
transition into obsolescence. Carriers aren’t allocating scarce capital
to out-of-date equipment.”

Schmitt
continues: “On a brighter note, there’s an investment cycle set to begin
next year in the core network that’s based on 100G
coherent and supported by the massive ramp in 100G prototyping and
trialing activities that are already underway worldwide.”

Infonetics Research (www.infonetics.com)
is an international market research and consulting firm serving the
communications industry since 1990. A leader in defining and tracking
emerging and established technologies in all world regions, Infonetics
helps clients plan, strategize, and compete effectively. View
Infonetics’ About Us slides at http://bit.ly/QUrbrV.